CreditAccess Grameen vs Muthoot Finance Q4 FY26

CreditAccess Grameen delivered a strong Q4 FY26, with PAT surging over 6x YoY to ₹340 crore and ROA reaching 4.4%. The AUM grew 14% YoY and 11.4% QoQ, driven by robust disbursement growth of 28.4% YoY. The recovery from the MFI credit cycle is evident: gross NPA (60 DPD) improved to 3.17% and PAR accretion rates have normalized. Management guided FY27 AUM growth of 20-25%, with credit cost declining to 3-4% and ROA of 4-4.8%. The retail finance portfolio (18.1% of AUM) is scaling rapidly, leveraging the group lending ecosystem. Key risks include prolonged West Asia crisis impacting rural demand and potential inflationary pressures on operating costs.

Guidance read

AUM growth of 20-25% in FY27: Management guided AUM growth of 20-25% for FY27, with MFI growing 10-12% and retail finance driving the balance. NIM of 12.8-13% in FY27: Net interest margin guided at 12.8-13% for FY27, down from Q4 FY26 exit of 14.2% due to expected pricing pass-through. Credit cost of 3-4% in FY27: Credit cost guided at 3-4% for FY27, down from 6.74% in FY26, reflecting normalized asset quality. ROA of 4-4.8% and ROE of 16-20% in FY27: Return on assets guided at 4-4.8% and return on equity at 16-20% for FY27.

Risk read

Key risks include Prolonged West Asia crisis impact — Management flagged potential supply disruptions (fuel/gas) from the West Asia crisis, which could affect rural customers and increase credit costs.; Inflationary pressure on operating costs — Management built in higher cost-to-income ratio guidance (33-35%) due to anticipated inflation from global issues, which could compress margins.; Competition in retail finance from peers — Analyst raised competition in Tamil Nadu; management acknowledged but downplayed, citing existing customer base and technology investments.; Regulatory cap on MFI share (60:40 mix) — Long-term growth ambition of 20%+ AUM CAGR may be constrained by the regulatory requirement to keep MFI below 60% of total portfolio..

Promise ledger

Scorecard data is being built as historical quarters are processed.

MU

Muthoot Finance

Q4 FY26 · Financial Services

Muthoot Finance reported a stellar Q4 FY26 with consolidated PAT surging 98% YoY to ₹10,607 crore, driven by record gold loan AUM of ₹1.65 lakh crore (up 54% YoY). Standalone PAT hit ₹10,134 crore (+95% YoY). The gold loan portfolio benefited from higher gold prices and a 0.5-1% rate hike, lifting yields to ~20.8%. Subsidiaries also performed well: Belstar Microfinance saw collection efficiency improve to 99.85%, and Muthoot Money's gold loan AUM grew 151% to ₹9,794 crore. Management guided for 15% standalone AUM growth in FY27, with 200-300 new branches planned. Risks include rising competitive intensity from AAA-rated NBFCs and potential yield normalization if gold prices stabilize. The shift to borrower-wise NPA classification increased reported NPAs, but underlying asset quality remains strong with LTV at 57%.

Guidance read

Standalone AUM growth guidance of 15% for FY27: Management reiterated its traditional first-quarter guidance of 15% standalone AUM growth for the full year, to be reviewed after Q1 or Q2. Branch expansion of 200-300 in Muthoot Finance and ~200 in Belstar: Plans to open 200-300 new gold loan branches in Muthoot Finance and about 200 gold branches in Belstar Microfinance in FY27. Yield likely to sustain at current levels: Management indicated that borrowing costs are trending up, so yields may not be reduced and could remain around current elevated levels.

Risk read

Key risks include Rising competition from AAA-rated NBFCs — Deep-pocketed competitors with lower cost of funds are entering gold financing, potentially pressuring market share and margins.; Customer churn and declining small-ticket customer base — Muthoot lost ~15 lakh small-ticket customers (below ₹50,000) as gold price rise reduced tonnage, though higher-ticket customers were added.; NPA increase due to borrower-wise classification — Stage 3 assets rose because of RBI-mandated borrower-level classification, though underlying collateral coverage remains strong at 58% LTV.; Potential yield normalization if gold prices stabilize — If gold price appreciation slows, the recent pricing benefit may reverse, compressing yields and profitability..

Promise ledger

Scorecard data is being built as historical quarters are processed.